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iPhone music to Apples ears, but Mac shines 29 July, 2007 Apples Macintosh PC business continued to grow in 2Q07, posting strong profits while additional profitability was driven by the iPod business. During the quarter, the company also enjoyed the successful introduction of a new line of business in the iPhone wireless handset. TBR believes Apple is well positioned for increased penetration of the consumer PC and wireless telephone businesses. Apple shipped 1.76 million Mac computers in 2Q07, 64% of them notebooks. Total unit shipments increased 32.9% year-to-year, up from 1.11 million in 2Q06. The company stated the unit growth rate for Macs is two and one-half times the estimate for total PC growth worldwide, and the U.S. Mac growth rate of 28.3% year-to-year is four times the estimated U.S. PC growth. TBR believes Macintoshes are increasing market share at a rapid rate, fueled by Windows compatibility, the halo effect of other Apple products and Apple retail stores, and by the markets tepid response to Microsoft Vista. Apple also benefits from the fact that it competes primarily in the consumer market, the more rapidly growing portion of the PC market. TBR believes the factors fueling Apple consumer market share growth will continue to prevail, and that Apple will increase consumer PC market share by 50% over the next four quarters. www.tbri.com.
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